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Increased capacity for a chemical found in ice cream and adhesives
Nouryon, the AzkoChemicals spin-off specialty chemicals company, has announced that it will be expanding its monochloroacetic acid (MCA) capacity in the Netherlands.
Who needs MCA?
While MCA is used in pharmaceuticals and crop protection, it is mainly used to produce cellulose gum (CMC) and modified starch. These products have countless applications ranging from ice cream emulsion stabilization and Mac n' Cheese to wallpaper adhesives. If that sentence makes you a little uncomfortable, read about why we need food additives like these here.
So why expand capacity to make more?
Nouryon recently acquired J.M. Huber's carboxymethyl cellulose (CMC) business, so its production of the feedstock (MCA) can now be increased as well. Additionally, the Head of Strategy at Nouryon says, "MCA serves several high-growth sectors," and that this expansion along with its new joint venture in India it will increase "overall MCA production capacity by more than 20 percent to help [them] capture demand growth.”.
Read the press release here.
Johnson Matthey to make materials for batteries in Poland
British chemicals and sustainable technologies company, Johnson Matthey, has received $160 million in loans from two European banks to build a battery materials plant in Poland. When the plant is up in running in 2022 it will be capable of supplying 100,000 electric vehicles (EVs) per year.
What are they making?
Johnson Matthey will be producing a brand new cathode active material called enhanced lithium nickel oxide (eLNO). The new material has a higher energy density than existing technologies. To produce these materials, Johnson Matthey has signed a 10-year lithium hydroxide supply deal with Canadian based Nemaska Lithium.
Bigger picture:
The EV market is expected to grow quite a bit in the coming years. In order to manufacture more batteries, you need to manufacture more of the materials that make the batteries possible. Many chemical companies are investing in new sites and reducing the cost of their part of the battery supply chain. BASF plans to have two new battery materials plants up in running in 2022 as well.
Read the press release here.
Exxon suspends their 401k plan and upsets the Union
US-based oil and gas major, ExxonMobil, suspended their contributions to all employees' retirement plans early last week due to the pandemic effective in October. Now the United Steelworkers Union (USW), who represents many of Exxon's employees, is seeking talks with Exxon about the change.
What are they saying?
The USW said in a statement, “We are assessing our options and will be doing all we can to protect our members’ benefits.". Exxon spokeswoman Ashley Alemayehu said in regards to those plans, “Exxon Mobil’s total remuneration remains competitive despite the suspension.”.
Zooming out:
One survey suggests that as much as 12% of US employers have suspended their retirement matches as well. Exxon's suspension is part of the company's effort to reduce its costs after a $1.1 billion loss last quarter (mentioned last week) while still paying out $3.7 billion in dividends.
Read more here.